5th Oct 2009 07:00
|
For Immediate Release |
5 October 2009 |
TYRATECH, INC.
("TyraTech" or "the Company")
Completion of Second Kraft Foods Milestone
and
Revised Contract
~ Revised contract for the remainder of the development project ~
TyraTech, Inc. (AIM: TYR), a leading independent novel eco-technology company for human, animal and environmental health, is pleased to announce that it has successfully achieved the second milestone in its functional foods contract with Kraft Foods Holdings, Inc ("Kraft Foods", NYSE: KFT), the world's second largest food company and a global leader in the consumer food products sector. In addition, with the project moving forward, the companies have revised the functional foods contract (the "Contract") to better address the development plan. The balance of the second milestone will be paid immediately, and under the revised Contract, TyraTech will receive a bi-annual cost reimbursement for agreed upon development costs for what would have been stages three and four.
In December 2006, TyraTech signed a worldwide exclusive co-development agreement with Kraft Foods to develop new, functional-food products to benefit people living in areas with endemic parasitic disease. This agreement was amended in December 2008. As expected at the time of the interim results on 16 September, TyraTech has completed the second stage of the agreement this year, triggering the remainder of its milestone payment to be paid immediately. The remaining two exclusivity payments for stages three and four will be paid at the end of this year and during 2011.
Whilst stage two remains unchanged and TyraTech will continue to receive an exclusivity fee from Kraft Foods for each stage, stages three and four have been amended under the revised contract in that TyraTech will now receive reimbursement of agreed upon development costs bi-annually. Kraft Foods retains the ability to recover certain development costs from future product royalties. TyraTech also reported in its interim results that it had already commenced work on stage three, which will involve the further qualification of the lead product.
Commenting on the revised contract, Douglas Armstrong, Chief Executive Officer of TyraTech, said:
"TyraTech and Kraft Foods have together made significant progress on this innovative functional food project. The continued evolution of our partnership with Kraft Foods demonstrates not only the strength of our relationship, but also the potential of our technology."
For further information please contact:
TyraTech Inc.
Douglas Armstrong Ph.D., Chief Executive Officer +1 (321) 409 7723
Keith Bigsby, Chief Financial Officer +1 (321) 409 7714
www.tyratech.com
Nomura Code Securities
Charles Walker/Clare Terlouw +44 (0)20 7776 1200
www.nomuracode.com
Buchanan Communications
Lisa Baderoon/ +44 (0)20 7466 5000 Catherine Breen / Stasa Filiplic
www.buchanan.uk.com
About TyraTech TyraTech was formed in 2004 to develop and commercialise products for the control of invertebrate pests and pathogens using the Company's proprietary technology. TyraTech, which already has products on the market, is positioned for human health, animal health and pesticide market opportunities which total over $32 billion globally. TyraTech's Nature's Technology provides the Company with a wide variety of product and business opportunities in many markets and geographic regions. The differentiating feature of these products is the potential to have a combined level of potency and safety that other invertebrate control products are unable to offer. TyraTech's platform brings many of the principles of drug discovery and development to the fields of insecticides and parasiticides. By targeting specific chemoreceptors that are found in invertebrates but not in humans and animals, TyraTech can produce products that use natural plant derived compounds targeting these receptors. TyraTech's plan for the use of its technology is to develop selected proprietary active ingredients which can then be used across a wide variety of market segments, either by development partners or by TyraTech itself. TyraTech already has products or partnerships in the areas of professional and horticultural insect control, and for consumer and professional pest control. TyraTech also has an innovative partnership with Kraft to use its natural oils to develop functional foods for improving the health of the more than 2 billion people worldwide subject to intestinal parasitic infections. TyraTech also has a separate technology with associated intellectual property that is the basis for the Sustainable Solutions business. This technology has been incorporated into specialised dairy farm equipment for processing cattle manure waste to a usable material for TyraTech to sell as a commercial plant growing medium. For more information please visit www.tyratech.com
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